
Advanced Microeconomic Theory (Spring 2015)
You can find this document at http://www.kimoon.ac.kr/gmi/gmi151s.html.
 How to find the site for this course:
Homepage of Kimoon Cheong (http://www.kimoon.co.kr => LECTURE HALL => Spring 2015 =>
Advanced Microeconomic Theory
Introduction
 The course considers optimization (maximizing and minimizing stuff like profit, cost and
utility), and constrained optimization (e.g., maximizing utility subject to the budget constraint)
and integration (consumer surplus). Applications include problems in consumer and producer
theory, general equilibrium, welfare economics, growth and discounting, oligopoly behavior, and
game theory.
 Economic theory and critical thinking will be stressed. After completing the course, you
will be better able to critically evaluate economic theories.
 To do well in this course, you will need to understand and use mathematical tools. In this
sense, an understanding of some mathematics is necessary for you to do well in the course.
You will also need to understand and use economic theory, and,
most importantly, you will need to be able to integrate the economic theory and the math to
solve economic problems. You can only
achieve this integration of mathematics and economics by solving economic problems.
Textbook:
Instructor:
Evaluatiom:
 Class Participation/Homeworks: 60%
 Final Exam: 40%
Weekly Schedule


What Is Economics? 1.1  1.3 / 1.4  1.8
 The Nature and Scope of Economics
Jack Hirshleifer, et al, Price Theory and Applications, 7th ed., Cambridge Univ. Press, 2005, Ch 1

1.1  1.4 / 1.5
 Ch 1. Comparative Statics and the Paradigm of Economics


3.1  3.4 / 3.5  3.6
 Ch 3. Functions of Several Variables

4.1  4.2 / 4.4  4.6
 Ch 4. Profit Maximization

5.1  5.3
 Ch 5. Matrices and Determinants

6.1  6.3 / 6.5  6.6
 Ch 6. Comparative Statics: The Traditional Methodology

7.1  7.3 / 7.4
 Ch 7. The Envelope Theorem and Duality

8.1  8.6
 Ch 8. The Derivation of Cost Functions  1

8.7  8.11
 Ch 8. The Derivation of Cost Functions  2

10.1  10.4
 Ch 10. The Derivation of Consumer Demand Functions  1

10.5  10.7
 Ch 10. The Derivation of Consumer Demand Functions  2

Behavioral Economics (1.1  1.2 / 1.3)
 Nature of Behavioral Econ,
Wilkinson, An Intro to Behavioral Econ, Ch 1, Palgrave Macmillan, 2008.
 Final Exam
Reading Materials
Optional
 What Is Economics? (David Friedman, Price Theory, Chs 1 & 2)
 McAffee, American Economic Growth and the Voyage of Columbus, American Economic Review, Sep. 1983
 Klein, Model Building vs Theorizing, 2007
 McCloskey, The Rhetoric of Economics, 1983
 Leijonhufvud, Life among the Econ, 1973
 Hamermesh, The Young Economist's Guide to Professional Etiquette, 1992
 McCloskey, Economical Writing, 1985
 Gans and Shepherd, How Are the Mighty Fallen, 1994
 Dudenhefer, A Guide to Writing in Economics, 2009
 Neugeboren, Writing Economics, 2001
 How do We Do Economic Research?
